03/18/2010 05:12 am ET | Updated May 25, 2011

FHA: Wealthy Buyers Qualifying For Guaranteed Mortgages, Despite Depleting Reserves

The Internal Revenue Service is giving tax rebates to first-time buyers, and soon to move-up buyers, in a program beset by accusations of fraud. And the government agency that issues mortgage insurance, the Federal Housing Administration, is underwriting loans at quadruple the rate of three years ago even as its reserves to cover defaults are dwindling. On Thursday, the Mortgage Bankers Association said more than one in six F.H.A. borrowers was behind on payments.